Bitcoin Scaling Solutions and Their Downsides

“Bitcoin was designed as a decentralized monetary system and an alternative to central banking,” begin Senior Economist Zhong Zhang and Simona Mola in their Law360 article. However, bitcoin has well-known scalability problems. This article addresses some potential solutions to Bitcoin’s scalability problems, noting that they could comprise the principle of decentralization, raise privacy questions and possibly create new digital assets that would be subject to securities laws.